WHEATON, Ill.--(BUSINESS WIRE)--First Trust Advisors L.P. (“First Trust”), a registered investment adviser, is pleased to announce the initial public offering of First Trust Senior Floating Rate 2022 Target Term Fund (the “Fund”), a closed-end fund. The Fund’s investment objectives are to seek a high level of current income and to return $9.85 per common share of beneficial interest of the Fund (the original net asset value before deducting offering costs) to holders of such shares on or about February 1, 2022. The Fund is expected to commence trading on December 22, 2016 on the NYSE under the ticker symbol “FIV.”
The Fund has initially raised gross proceeds of $325,000,000 in its common share offering and, should the underwriters exercise the overallotment option in full, which may or may not occur, the Fund will have raised gross proceeds of approximately $369,500,000. First Trust is the Fund’s investment adviser and is responsible for the day-to-day management of the Fund’s portfolio, managing the Fund’s business affairs and providing certain clerical, bookkeeping and other administrative services. First Trust will also be responsible for determining the Fund’s overall investment strategy and overseeing its implementation. The lead managers of the common share underwriting syndicate were Morgan Stanley & Co. LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated, UBS Securities LLC and Wells Fargo Securities, LLC.
Shares of closed-end investment companies, like the Fund, usually trade on a national stock exchange. Similar to stocks, the Fund’s share price will fluctuate with market conditions and, at the time of sale, may be worth more or less than the original investment. Shares of closed-end funds often trade at a discount to their net asset value.
Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Fund carefully before investing. For a prospectus which contains this and other information relevant to an investment in the Fund, please contact First Trust Portfolios L.P. at 1-800-621-1675. Investors should read the prospectus carefully before they invest or send money.
This document is not an offer to sell securities and is not soliciting an offer to buy securities in any jurisdiction where the offer or sale is not permitted.
About First Trust Advisors L.P.
First Trust Advisors L.P., along with its affiliate First Trust Portfolios L.P., are privately-held companies which provide a variety of investment services, including asset management and financial advisory services, with collective assets under management or supervision of approximately $97 billion as of November 30, 2016 through unit investment trusts, exchange-traded funds, closed-end funds, mutual funds and separate managed accounts.